Economic activity improved slightly in September into early October, with modest gains in manufacturing and transportation activity, the Federal Reserve said Wednesday.
Most of the Fed’s 12 districts reported higher production of automobiles and transportation-related equipment, the Fed said in its “beige book” report, issued eight times a year.
The Cleveland, Atlanta and Chicago districts saw increases in auto production, while Boston, Richmond, Chicago and St. Louis cited robust activity for suppliers.
Dallas reported strong demand for nondefense transportation goods and Chicago cited higher demand for medium- and heavy-duty trucks.
One Cleveland executive noted that newer engines and Class 8 trucks were increasing in price and that it was becoming more difficult to secure financing. Hiring has been largely for driver replacement, but the Fed cited reports about carriers adding capacity with wage pressures emerging due to a tighter driver pool.
Trucking firms faced challenges in hiring long-haul drivers as some opted to remain on unemployment benefits rather than accept higher income for driving long-distance routes, the report said, citing a transportation contact in the Fed’s Richmond, Va., district.
Wednesday’s report, which covered the period of Aug. 31 through Oct. 7, was prepared by the Chicago Fed.
